GP&H Suite


GP&H Suite

10 Jul

Clarifying the Obligation to Disclose Ultimate Beneficiary Owners in Mexico: A Legal Perspective


Welcome to Mexico, esteemed foreign investor. In order to provide you with a comprehensive understanding of the obligation to disclose ultimate beneficiary owners (UBO) in our country, here we will explore the recent judicial decisions issued by the Mexican Supreme Courte (SCJN).

The obligation to disclose the UBO in Mexico has gained significant importance in recent years. Recognizing this, the SCJN has addressed key facets of this requirement, shedding light on the legal landscape and providing clarity to foreign investors.

Firstly, the SCJN has emphasized the importance of UBO disclosure in combating money laundering and other illicit activities. Mexico, as an active member of international efforts to combat money laundering, hast implemented robust legal frameworks to safeguard financial integrity. Disclosure of UBO information serves as a crucial tool in promoting transparency, thereby mitigating potential risks associated with illicit funds.

Secondly, recent judicial decisions have reinforced the obligation of companies and enterprises operating in Mexico to provide accurate and up-to-date UBO information- Failure to comply with this obligation can result in severe penalties, including fines, reputational damage, and potential legal, consequences. Therefore foreign investors are strongly encouraged to prioritize compliance with UBO disclosure requirements, ensuring the accuracy and completeness of the information provided.

Thirdly, the SCJN has recognized the need for collaboration between governmental entities and private entities when it comes to UBO disclosure. While the ultimate responsibility rests with companies, the court has emphasized the role of regulators and authorities in facilitating compliance through standardized procedures, information-sharing mechanism, and enhanced guidance. Foreign investors should actively engage with relevant authorities and seek support in navigating these obligations within the Mexican legal system.

In conclusion, understanding the obligation to disclose UBO in Mexico from a legal perspective is paramount for foreign investors aiming to establish a presence in our country. Recent decisions by the SCJN reflect the importance of UBO disclosure in combating money laundering and promoting financial transparency. Therefore, we recommend the following three key actions:

  1. Prioritize Compliance: Foreign investors should ensure they have well-established mechanism to obtain accurate and up-to-date UBO information, providing complete transparency to authorities and complying with Mexican legal requirements.
  2. Seek Guidance: Engage with legal experts to clarify any uncertainty or questions regarding UBO disclosure obligations. This proactive approach will enable foreign investors to navigate the complexities of the Mexican legal framework smoothly.
  3. Foster Collaboration: Establish strong relationships with governmental entities and regulatory bodies, actively participating in initiatives aimed at promoting compliance and enhancing the standardization of UBO disclosure procedures.

By adhering to these recommendations, foreign investors can ensure a smooth integration into the Mexican business landscape, fostering transparency, and contributing to the country´s economic growth.


Giselle Villanueva

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